Teaching Tips: What Can Parents Do?
Day-To-Day Discussions Go A Long Way Toward Education
MINNEAPOLIS, 4:09 p.m. EDT April 12, 2001 -- Many parents don't realize the importance of their role in teaching their kids money management.
Among parents who think they are "very effective" in providing financial guidance to their children, 25 percent have not involved their child in discussions about family financial matters and 24 percent have not taught their child how to set financial goals.
Among self-assessed "very effective" parents with a child age 11-17:
- 80 percent have not exposed their children to financial software.
- 68 percent have not taught their child to use the Internet to obtain financial information.
- 57 percent have not obtained educational materials to help teach their child.
- 39 percent have not taught their child about different kinds of investments.
- 27 percent have not taught their child to make a budget.
- 23 percent have not taught their child to track expenses.
- 20 percent have not involved their child in discussions about paying for education.
The American Savings Educational Council offers some ideas for parents to help kids become financially responsible adults:
- Discuss family financial matters (e.g., family budget, allowances, routine shopping, purchase of a new car or home, planning a vacation, paying for college, etc.) with your children.
- Teach your kids to identify financial goals, create a budget, track expenses and comparison shop.
- Obtain financial education materials from your work place, educational organizations or financial institutions, and share them with your kids.
- Incorporate the media as a tool to educate your kids about financial matters: newspaper articles, television and radio programs, magazines and books.
- Use financial planning software and the Internet as a resource for financial information and education.
- Explain to your kids how different financial institutions and products work (e.g., banks, insurance companies, mutual funds, a checking or saving account, 401(k) plans, IRAs, stocks, bonds, credit cards, savings bonds, etc.).
- Talk to your kids about their future job or business ownership prospects.
- Discuss with your children what options they have when they receive a monetary gift (e.g., saving, investing, giving to charity, etc.).
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